Healey expected to announce 3.9% minimum-wage rise

Chancellor John Healey is expected to announce a 3.9% increase in the National Living Wage in the Budget on Wednesday, taking the hourly rate for workers aged 21 and over from £12.71 to about £13.20, according to advance reports. The proposed increase has not yet been confirmed by an official announcement. The expected rate for workers aged 18 to 20 would rise by the same percentage, from £10.85 to about £11.27 an hour. If adopted, the changes are expected to take effect in 2027. One report specified April 1, 2027, while the other reports described the timing as next April or during 2027. The reported younger-worker increase would continue the narrowing of the gap between the adult and younger rates, but would not equalise them. Labour’s manifesto committed to ending age bands and bringing the pay of 18-to-20-year-olds into line with that of older workers by 2030. The advance reports indicate that the government may instead set the two rates to rise at roughly the same pace in this Budget. The Treasury declined to comment on the reported plans. The figures trace to reporting based on unnamed sources, and the Budget announcement will determine whether the rates are confirmed....